A standard production possibilities model representing the trade-off between final goods (food and basic necessities) and Intermediate goods (capital, farm equipment, etc.) can be used to model a source for economic growth. Specifically, when resources are reallocated from final goods In the form of savings or deferred consumption to Intermediate goods through Investment in capital equipment, the additional capital will lead to future increases In productivity and growth. Suppose, however, you are looking at an economy near subsistence, where all resources are needed to provide for the basic caloric and health needs of the population. In your opinion, should this country's economic policy promote the accumulation of capital, a requirement for more savings and Investment? Plows (K) 200 150 100 50 100 200 300 Wheat (Y) No, a country's economic policy should always prioritize the needs of Its current population, not Its future population. Yes, some sacrifice in the present will lead to the potential to produce more final and Intermediate goods In the future. Yes, since the population Is likely to grow, the economy needs to grow at least at the same rate. Investment In capital is necessary for this to occur